Overview

In the first quarter of 2020, Malaysia’s labour productivity, as measured by value added per hour worked rose 2.1 per cent after  registering  1.4  per  cent  in  the  preceding  quarter.  The  increase  in  labour  productivity  for  this  quarter was due to decline in hours worked larger as against moderation in Malaysia’s economy. During this quarter, value added grew marginally by 0.7 per cent (Q4 2019: 3.6%) while hours worked decreased 1.4 per cent as compared to 2.1 per cent in Q4 2019. In the meantime, employment increased at a slower rate of 1.6 per cent (Q4 2019: 2.2%). Thus, labour productivity expressed as the ratio of value added to employment declined 0.8 per cent (Q4 2019: 1.4%), the lowest growth since first quarter of 2016. In terms of labour productivity level, value added per hour worked in Q1 2020 was RM40 per hour (Q4 2019: RM42 per hour) while value added per employment was RM22,578 per person (Q4 2019: RM24,263 per person).

Agriculture sector declined further to 7.1 per cent (Q4 2019: -5.8%) for labour productivity by hours worked. During this quarter, value added of this sector decreased 8.7 per cent (Q4 2019: -5.7%) while hours worked declined 1.8 per cent from marginal  growth  of  0.2  per  cent. In  the  meantime,  labour productivity measured as value added per employment dropped  8.9  per  cent  (Q4 2019: -6.1%)  while  employment  posted  a  smaller  growth  of   0.1 per cent (Q4 2019: 0.5%).  In  terms  of  labour  productivity  level,  value  added  per  hour  worked  in  Q1  2020  for  Agriculture  sector  was  RM23  per  hour  (Q4 2019: RM25 per hour) while value added per employment was RM11,948 per person (Q4 2019: RM13,229 per person).

Labour  productivity  by  hours  worked  for  Mining  and  Quarrying  sector   rebounded  to  3.8  per   cent  in  Q1 2020  (Q4 2019: -1.1%). The growth of value added in this sector remained subdued at negative 2.0 per cent (Q4 2019: -3.4%) while hours worked declined at a faster rate of 5.6 per cent (Q4 2019: -2.2%).  In  this  quarter,  labour  productivity  by  value  added  per  employment  for  this  sector  improved by registering a mild decline of 0.4 per cent (Q4 2019: -4.0%) while employment decreased 1.7 per cent (Q4 2019: 0.7%). In terms of level of labour productivity, value added per hour worked for this sector in Q1 2020 was RM565 per hour (Q4 2019: RM614 per hour) while value added per employment was RM339,032 per person (Q4 2019: RM379,347 per person).

Manufacturing sector  posted  a  growth  of  labour  productivity in  terms of value added  per hour worked at  2.2 per cent  (Q4 2019: 1.2%). Value added of this sector grew at a slower rate of 1.5 per cent (Q4 2019: 3.0%) while hours worked decreased 0.7 per cent (Q4 2019: 1.8%). During this quarter, the highest growth of labour productivity by hours worked in Manufacturing sector was recorded by Electrical, electronic & optical products (4.8%). This was followed by Petroleum, chemical, rubber & plastic products (4.3%) and Wood products, furniture, paper products & printing (2.7%). Employment for Manufacturing sector rose 1.6 per  cent (Q4 2019: 2.3%)  which  led  to drop  in value  added  per  employment  at  0.2  per  cent  (Q4 2019: 0.8%).  Level   of   labour   productivity  which   measured  as  value   added  per  hour  worked  was  RM51  per  hour  in  Q1 2020 (Q4 2019: RM53 per hour) while value added per employment was RM29,788 per person (Q4 2019: RM31,580 per person).

Labour  productivity  by  hours  worked  for  Construction  sector  posted  a  negative  growth  of  1.6 per cent  in Q1 2020  (Q4 2019: 4.3%). During this quarter, value added of this sector contracted 7.9 per cent (Q4 2019: 1.0%) while hours worked continued its negative growth for eight consecutive quarters at 6.4 per cent (Q4 2019: -3.2%). Labour productivity by value added per employment for this sector declined 5.3 per cent (Q4 2019: 3.2%).  In  addition,  employment  recorded  a  negative  growth  of  2.7  per  cent  since  Q4  2019  (Q4 2019: -2.1%).  Value  added  per  hour  worked  for  Construction  sector  was  RM19  per hour in Q1 2020 (Q4 2019: RM19 per hour) while  value  added  per  employment  was  RM10,776  per  person  (Q4 2019: RM11,102 per person).

The  growth  of  labour  productivity,   value  added  per  hour  worked  for  Services  sector  went  up  by  3.7 per  cent  (Q4 2019: 2.6%). The value added of this sector expanded 3.1 per cent after registering 6.2 per cent in the preceding quarter while hours worked declined 0.6 per cent (Q4 2019: 3.5%). The highest growth of labour productivity by hours worked in Services sector was recorded by Finance & insurance (6.9%). This was followed by Utilities and Information & communication which posted a growth of 6.1 per cent and 3.2 per cent respectively. Meanwhile, labour productivity expressed as the ratio of value added to employment grew at a slower rate of 0.5 per cent (Q4 2019: 2.9%) as employment  increased  2.5  per  cent   (Q4 2019: 3.2%). Value added per hour worked for this sector was RM38 per hour in Q1 2020 (Q4 2019: RM41 per hour) while value added per employment was RM21,656 per person (Q4 2019: RM23,463 per person).

Released By:

DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
 DrUzir_Mahidin    Dr_Uzir

21 May 2020

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